On February 18, 2025, the Securities Exchange Board of India (“SEBI”), issued a consultation paper on the technology-based measures to secure trading environment and to prevent unauthorized transactions in trading/ demat account of investors (“Consultation Paper”)[1]. The Consultation Paper invites public comments and suggestions, to be submitted at the latest by March 11, 2025.
This initiative addresses the increasing concerns related to security breaches and unauthorized access in the digital trading landscape. SEBI has been exploring methods such as enhanced authentication protocols, real-time monitoring, and better fraud detection mechanisms to safeguard investor assets and data.
The Consultation Paper outlines various proposals to strengthen the security of trading and demat accounts, including the introduction of advanced technological solutions such as biometric authentication, log-in from multiple devices, and the family accounts operations from primary device.
[1]https://www.sebi.gov.in/reports-and-statistics/reports/feb-2025/consultation-paper-on-technology-based-measures-to-secure-trading-environment-and-to-prevent-unauthorised-transactions-in-trading-demat-account-of-investors_92015.html